A Project Purchasing Agent Is Trying to Order the Concrete

question 97

Multiple Choice

A project purchasing agent is trying to order the concrete needed to continue the project. However, the supplier will not be able to deliver it until next week. This is an example of what kind of resource constraint?

• A) Working capital
• B) People
• C) Equipment
• D) Information
• E) Materials

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, calculated as cost of goods sold divided by the average inventory.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by the average accounts receivable.

Sales In Receivables

Likely refers to the concept of "Accounts Receivables" which are amounts owed by customers for goods or services delivered on credit.

Decimal Place

The position of a number to the right of the decimal point; each position represents a power of ten.